A key measure of underlying US inflation favored by the Federal Reserve cooled last month, and consumer spending rebounded sharply.
Earlier in the week, the collapse of a major bridge in Baltimore will cause weeks or months of transportation disruptions in the Mid-Atlantic region and accelerate a shift of cargo to the US West Coast.
In Japan, the yen weakened to levels last seen in 1990, prompting multiple officials to affirm their commitment to intervene if necessary.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, geopolitics and markets:
US
The Fed’s preferred gauge of underlying inflation cooled last month after a stronger January increase than initially reported. Chair Jerome Powell spoke after the figures were released Friday, saying they were “pretty much in line with our expectations” and reiterated the central bank is in no rush to cut interest rates.
The collapse of the Francis Scott Key Bridge after a container ship slammed into a support structure shut the Port of Baltimore. Experts and economists say it’s going to be a logistical choke-point for a while, but a localized one that shouldn’t derail an otherwise solid US economy, with companies able to adapt.
Virtually all Americans have gotten wealthier since the pandemic. But as the overall pie has gotten larger, the slice for a group of affluent households is shrinking.
Asia
Japan’s top currency official said recent yen weakness is odd and out of line with current economic fundamentals, reaffirming his commitment to act if needed to prevent excessive swings in the exchange rate. The yen is hovering around its weakest level against the dollar in about 34 years.
South Korea’s output of semiconductors jumped the most in 14 years in February in an indication of ongoing recovery in the country’s most important industrial sector and global tech demand. Production might have been bigger had the lunar new year holiday taken place in January like last year instead of February.
Australian retail sales moderated in February as households remained cautious about their finances with inflation still elevated and interest rates at a 12-year high. The figures follow data showing Australian inflation was steady in February, when economists had predicted a slight acceleration.
Europe
German unemployment rose less than expected in March — further evidence of labor-market resilience that may help underpin a modest economic recovery later this year.
The Riksbank laid the groundwork for monetary easing as soon as May, offering Sweden’s recession-stricken economy the prospect of some imminent respite. While policymakers led by Governor Erik Thedeen kept their benchmark interest rate at 4% as expected, they strengthened signals on a cut within the next quarter and projected a pathway to three possible reductions this year.
France’s budget deficit is slipping away from the government’s control, undermining President Emmanuel Macron’s credibility as an economic reformer capable of resolving the country’s fiscal challenges. Growth in tax revenues slowed sharply as the euro area’s second-biggest economy stagnated and the pace of expansion in spending eased only slightly.
Emerging Markets
Aluminum Corp. of China Ltd. said it sees “relatively high” risks to supplies of bauxite from Guinea, highlighting its growing dependence on a single country for the raw material. The West African nation last year provided 70% of China’s imports of bauxite, which is used to produce aluminum.
World
Sri Lanka unexpectedly renewed its monetary easing cycle. Hungary also cut, with officials planning to dial back interest-rate reductions to shore up the currency. Ghana, South Africa and Sweden held rates steady, while Nigeria hiked by more than expected.
